Nifty future is trading at a premium of ~32 points to November future. Fresh writing in puts at higher levels and shedding in calls at in-the-money strikes indicates markets gaining strength at current levels and thereby setting for an up move. Call concentration and continuous put writing at 6,300 indicates 6,300 to act as a crucial level, acting as a support as well as resistance. On account of concentration the range for November series is 6,500 on the upside and 6,000 on the downside
Option Analysis:
· Call writing: Continuous shedding is being witnessed at in-the-money strikes since last few trading sessions and writing at higher strikes. Major shedding was witnessed at 6,100 CE and major writing at 6,300 PE of 5.5 lakh shares. Concentration is witnessed at 6,500 CE of 72.7 lakh shares.
· Put Writing: On the other hand, major fresh writing in puts was seen at 6,300 PE of 6.8 lakh shares and has been witnessing for past few trading sessions. Concentration is witnessed at 6,000 PE of 73 lakh shares.
Implications: Fresh writing in puts at higher levels and shedding in calls at in-the-money strikes indicates markets gaining strength at current levels and thereby setting for an up move. Call concentration and continuous put writing at 6,300 indicates 6,300 to act as a crucial level, acting as a support as well as resistance. On account of concentration the range for November series is 6,500 on the upside and 6,000 on the downside.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 10th November, 2010 close at 19 which is 1.75% higher as compared to previous close, after touching an intraday high of 19.26 and low of 16.45.
Implications: Indian VIX surged in today’s trading session and has been trading below 20 levels. We expect it to be subdued and consolidate at current levels.
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